NEW YORK (AP) -- Crude oil prices shot higher and then retreated Thursday, reaching a new record of $96 a barrel before concerns about the economy and France's decision to release oil from its strategic petroleum reserve motivated investors to cash in some of their recent gains.

The Commerce Department's report that consumer spending rose by 0.3 percent in September, less than the 0.4 percent increase analysts expected, raised the prospect of a slowing economy that could depress demand for oil. And downbeat news about manufacturing came from the Institute for Supply Management, which said industrial activity grew in October at the weakest pace since March.

Still, oil prices have surged 20 percent in one month, and when any market rises that far that fast, investors tend to sell to lock in some of their gains.

The Federal Reserve's decision to cut interest rates a quarter-percentage point on Wednesday got a mixed reception in the oil market but probably contributed to some of Thursday's selling, analysts said. On

WASHINGTON (AP) -- The growth in consumer spending slowed to a crawl in September as shoppers, worried about a deepening housing downturn, stayed away from the malls.

A different gauge of manufacturing activity slipped close to recession levels last month.

The latest economic data is likely signaling that a sharp slowdown is under way over the next two quarters as the housing slump, this summer's severe credit crunch and now rising energy prices take a toll on economic growth, analysts said.

The Commerce Department reported Thursday that consumer spending rose by 0.3 percent in September, the smallest rise in three months and lower than the 0.4 percent increase analysts expected. The 0.4 percent gain in incomes was in line with expectations.

In another report, the Institute for Supply Management, an Arizona-based trade group, said its manufacturing index dipped to 50.9 in October. That was the weakest level since March and the fourth consecutive month that manufacturing has slowed.

The September reading had been 52 and analysts had expected a slightly stronger 51.8 for October. Any

MONTGOMERY, Ala. (AP) -- The Alabama Supreme Court on Thursday threw out nearly all of a record $3.6 billion verdict that the state government won against Exxon Mobil Corp. in a dispute over natural gas royalties.

In an 8-1 decision, the state's highest court awarded Alabama $51.9 million in compensatory damages. The court threw out all punitive damages, which made up most of the $3.6 billion verdict, the largest ever in Alabama.

The state conservation department had sued Exxon Mobil, saying it had intentionally underpaid the state for royalties due from natural gas wells the company drilled in state-owned waters along the Alabama coast. Exxon Mobil, the world's biggest publicly traded oil company, argued that no fraud was involved and the case was a routine contract dispute.

"It affirms what we've said all along that this was never a fraud case," Exxon Mobil attorney Dave Boyd said.

Jere Beasley, one of the state's attorneys, said the state will likely ask the court to reconsider.

"When a powerful and politically influential corporate giant can get away with what Exxon did to the

Daily FX
Japanese Yen at Critical Level
Thursday November 1, 6:53 am ET
By Jamie Saettele, Currency Analyst strategist@dailyfx.com


Commentary: The USDJPY has reached the level that we felt would offer resistance and a top. The levels in question are the 100% extension of 113.24-115.04/113.76 at 115.56, the 50% retrace of 117.93-113.24 at the same level, and the former 4th wave at 115.72. Today’s high (to this point) is at 115.73 so we do expect a top and reversal soon.

The next level of potential resistance is the 61.8% retrace at 116.14. Coming under 115.18 instills confidence in the bearish outlook.

Strategy: Bearish now, against 117.10, target below 111.59

Daily FX
Euro Topping?
Thursday November 1, 6:50 am ET
By Jamie Saettele, Currency Analyst strategist@dailyfx.com


Commentary: The appearance of 5 waves up from 1.4125 along with this morning’s decline suggest that a top may be in place at 1.4503. 1.4500 is an important psychological level. At the very least, a return to short term support at 1.4374 is expected, but this is likely a more significant top that will see a return to 1.4125 (4th wave of 2 larger degrees).

Evidence that this could be a more significant top includes the fact that the EURUSD just rallied 7 days in a row (this is rare…and previous instances indicated tops of at least a few figures), and overbought/ divergent daily RSI. Still, there is no sign of a 5 wave decline yet so be careful if attempting to short.

Strategy: Exit bullish position

DETROIT (AP) -- Chrysler LLC said Thursday it plans to cut up to 12,000 jobs, or up to 15 percent of its workforce, as part of an effort to slash costs and match slowing demand for some vehicles.

The automaker will cut 8,500 to 10,000 hourly jobs and 2,100 salaried jobs through 2008. The company already had begun cutting 1,100 temporary workers Wednesday. It will eliminate shifts at five North American assembly plants and cut four vehicle models from its lineup.

The cuts come in addition to the 13,000 layoffs Chrysler announced in February as part of a massive restructuring plan. Those cuts included 11,000 production jobs and 2,000 salaried jobs. The new round of cuts was expected to involve buyouts or early retirement packages similar to those made in February.

Chrysler officials said falling demand for vehicles in the U.S. market made the cuts necessary. Chrysler's sales were down 3 percent in the first nine months of this year, according to Autodata Corp., and the company said it expects sluggish sales to continue in 2008.

"The market situation has changed dramatically in the eight months since Chrysler established the Recovery and Transformation Plan as its blueprint," Bob Nardelli, Chrysler's chairman and chief executive